83418 Regional Profile: Southern African Development Community (SADC) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 2 © 2013 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org All rights reserved. 1 2 3 4 15 14 13 12 A copublication of The World Bank and the International Finance Corporation. This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. 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Cover design: The Word Express Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 12 Dealing with construction permits........................................................................................... 21 Getting electricity ....................................................................................................................... 28 Registering property .................................................................................................................. 35 Getting credit .............................................................................................................................. 43 Protecting investors ................................................................................................................... 48 Paying taxes ................................................................................................................................ 56 Trading across borders .............................................................................................................. 64 Enforcing contracts .................................................................................................................... 75 Resolving insolvency .................................................................................................................. 82 Data notes ................................................................................................................................... 89 Resources on the Doing Business website .............................................................................. 94 Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 4 INTRODUCTION Doing Business sheds light on how easy or difficult it is (MENA) and Organization for the Harmonization of for a local entrepreneur to open and run a small to Business Law in Africa (OHADA). The data in this report medium-size business when complying with relevant are current as of June 1, 2013 (except for the paying regulations. It measures and tracks changes in taxes indicators, which cover the period January– regulations affecting 11 areas in the life cycle of a December 2012). business: starting a business, dealing with construction The Doing Business methodology has limitations. Other permits, getting electricity, registering property, areas important to business—such as an economy’s getting credit, protecting investors, paying taxes, proximity to large markets, the quality of its trading across borders, enforcing contracts, resolving infrastructure services (other than those related to insolvency and employing workers. trading across borders and getting electricity), the In a series of annual reports Doing Business presents security of property from theft and looting, the quantitative indicators on business regulations and the transparency of government procurement, protection of property rights that can be compared macroeconomic conditions or the underlying strength across 189 economies, from Afghanistan to Zimbabwe, of institutions—are not directly studied by Doing over time. The data set covers 47 economies in Sub- Business. The indicators refer to a specific type of Saharan Africa, 33 in Latin America and the Caribbean, business, generally a local limited liability company 25 in East Asia and the Pacific, 25 in Eastern Europe operating in the largest business city. Because and Central Asia, 20 in the Middle East and North standard assumptions are used in the data collection, Africa and 8 in South Asia, as well as 31 OECD high- comparisons and benchmarks are valid across income economies. The indicators are used to analyze economies. The data not only highlight the extent of economic outcomes and identify what reforms have obstacles to doing business; they also help identify the worked, where and why. source of those obstacles, supporting policy makers in designing regulatory reform. This regional profile presents the Doing Business indicators for economies in Southern African More information is available in the full report. Doing Development Community (SADC). It also shows the Business 2014 presents the indicators, analyzes their regional average, the best performance globally for relationship with economic outcomes and each indicator and data for the following comparator recommends regulatory reforms. The data, along with regions: East Asia and the Pacific (EAP), Economic information on ordering the Doing Business 2014 Community of West African States (ECOWAS), report, are available on the Doing Business website at European Union (EU), Middle East and North Africa http://www.doingbusiness.org. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 5 THE BUSINESS ENVIRONMENT For policy makers trying to improve their economy’s The ranking on each topic is the simple average of regulatory environment for business, a good place to the percentile rankings on its component start is to find out how it compares with the indicators (see the data notes for more details). regulatory environment in other economies. Doing The aggregate ranking on the ease of doing Business provides an aggregate ranking on the ease business benchmarks each economy’s of doing business based on indicator sets that performance on the indicators against that of all measure and benchmark regulations applying to other economies in the Doing Business sample domestic small to medium-size businesses through (figure 1.1). While this ranking tells much about their life cycle. Economies are ranked from 1 to 189 the business environment in an economy, it does by the ease of doing business index. For each not tell the whole story. The ranking on the ease of economy the index is calculated as the ranking on the doing business, and the underlying indicators, do simple average of its percentile rankings on each of not measure all aspects of the business the 10 topics included in the index in Doing Business environment that matter to firms and investors or 2014: starting a business, dealing with construction that affect the competitiveness of the economy. permits, getting electricity, registering property, Still, a high ranking does mean that the getting credit, protecting investors, paying taxes, government has created a regulatory environment trading across borders, enforcing contracts and conducive to operating a business. resolving insolvency. Figure 1.1 Where economies stand in the global ranking on the ease of doing business Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 6 THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy stands regional average (figure 1.2). Another perspective is in the aggregate ranking on the ease of doing business is provided by the regional average rankings on the topics useful. Also useful is to know how it ranks compared with included in the ease of doing business index (figure 1.3). other economies in the region and compared with the Figure 1.2 How economies in Southern African Development Community (SADC) rank on the ease of doing business *The economy with the best performance globally is included as a benchmark. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 7 THE BUSINESS ENVIRONMENT Figure 1.3 How Southern African Development Community (SADC) ranks on Doing Business topics Regional average ranking Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 8 Figure 1.4 How far has Southern African Development Community (SADC) come in the areas measured by Doing Business? Note: The distance to frontier measure shows how far on average a region is from the best performance achieved by any region on each Doing Business indicator since 2005, except for the getting electricity indicators, which were introduced in 2009. The measure is normalized to range between 0 and 100, with 100 representing the best performance (the frontier). The overall distance to frontier is the average of the distance to frontier in the first 9 indicator sets shown in the figure and does not include getting electricity. Data on the overall distance to frontier including getting electricity is available at http://www.doingbusiness.org/data/distance-to-frontier. See the data notes for more details on the distance to frontier measure. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 9 THE BUSINESS ENVIRONMENT Just as the overall ranking on the ease of doing more significant impact as measured by Doing business tells only part of the story, so do changes in Business. that ranking. Yearly movements in rankings can The absolute values of the indicators tell another part provide some indication of changes in an economy’s of the story (table 1.1). Policy makers can learn much regulatory environment for firms, but they are always by comparing the indicators for their economy with relative. An economy’s ranking might change because those for the lowest- and highest-scoring economies of developments in other economies. An economy that in the region as well as those for the best performers implemented business regulation reforms may fail to globally. These comparisons may reveal unexpected rise in the rankings (or may even drop) if it is passed strengths in an area of business regulation—such as a by others whose business regulation reforms had a regulatory process that can be completed with a small number of procedures in a few days and at a low cost. Table 1.1 Summary of Doing Business indicators for Southern African Development Community (SADC) Lowest regional Best regional Best global Indicator Regional average performance performance performance Starting a Business 185 (Congo, Dem. Rep.) 19 (Mauritius) 109 1 (New Zealand) (rank) Procedures (number) 12 (Swaziland) 2 (Madagascar) 8 1 (New Zealand)* Time (days) 90.0 (Zimbabwe) 6.0 (Mauritius) 35.9 1.0 (New Zealand) Cost (% of income per 200.1 (Congo, Dem. 0.3 (South Africa) 49.8 0.0 (Slovenia) capita) Rep.) Paid-in Min. Capital (% 909.1 (Congo, Dem. 0.0 (12 Economies*) 62.1 0.0 (112 Economies*) of income per capita) Rep.) Dealing with 1 (Hong Kong SAR, Construction Permits 177 (Tanzania) 26 (South Africa) 99 China) (rank) 6 (Hong Kong SAR, Procedures (number) 21 (Botswana) 11 (3 Economies*) 14 China) Time (days) 496.0 (Zimbabwe) 78.0 (South Africa) 182.0 26.0 (Singapore) Cost (% of income per 3,055.6 (Zimbabwe) 9.9 (South Africa) 620.6 1.1 (Qatar) capita) Getting Electricity 187 (Madagascar) 48 (Mauritius) 139 1 (Iceland) (rank) Procedures (number) 7 (Angola)* 4 (Mauritius)* 6 3 (10 Economies*) Time (days) 450 (Madagascar) 37 (Namibia) 145 17 (Germany) Cost (% of income per 23,025.1 (Congo, Dem. 281.1 (Mauritius) 3,709.1 0.0 (Japan) capita) Rep.) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 10 Lowest regional Best regional Best global Indicator Regional average performance performance performance Registering Property 178 (Namibia) 41 (Botswana) 111 1 (Georgia) (rank) Procedures (number) 9 (Swaziland) 4 (4 Economies*) 6 1 (4 Economies*) Time (days) 191.0 (Angola) 15.0 (Mauritius)* 51.7 1.0 (New Zealand)* Cost (% of property 13.8 (Namibia) 2.0 (Malawi) 7.3 0.0 (5 Economies*) value) Getting Credit (rank) 180 (Madagascar) 13 (Zambia) 104 1 (Malaysia)* Strength of legal 2 (Madagascar) 9 (Zambia) 6 10 (10 Economies*) rights index (0-10) Depth of credit 1 (Zimbabwe)* 6 (Mauritius)* 4 6 (31 Economies*) information index (0-6) Public registry 0.2 (Madagascar) 69.2 (Mauritius) 19.0 100.0 (Portugal)* coverage (% of adults) Private bureau 3.7 (Zimbabwe) 66.2 (Namibia) 40.0 100.0 (22 Economies*) coverage (% of adults) Protecting Investors 147 (Congo, Dem. Rep.) 10 (South Africa) 79 1 (New Zealand) (rank) Extent of disclosure 2 (Swaziland) 8 (South Africa)* 5 10 (10 Economies*) index (0-10) Extent of director 1 (Congo, Dem. Rep.)* 8 (4 Economies*) 5 10 (Cambodia) liability index (0-10) Ease of shareholder 3 (Botswana) 9 (Mauritius)* 6 10 (3 Economies*) suits index (0-10) Strength of investor 3.7 (Congo, Dem. Rep.) 8.0 (South Africa) 5.5 9.7 (New Zealand) protection index (0-10) Paying Taxes (rank) 176 (Congo, Dem. Rep.) 13 (Mauritius) 89 1 (United Arab Emirates) Payments (number per 3 (Hong Kong SAR, 49 (Zimbabwe) 7 (South Africa) 31 year) China)* 12 (United Arab Time (hours per year) 348 (Congo, Dem. Rep.) 76 (Seychelles) 210 Emirates) Trading Across 176 (Malawi) 12 (Mauritius) 129 1 (Singapore) Borders (rank) Documents to export 10 (Angola)* 4 (Mauritius) 7 2 (Ireland)* (number) Time to export (days) 53 (Zimbabwe) 10 (Mauritius) 28 6 (5 Economies*) Cost to export (US$ per 3,765 (Zimbabwe) 675 (Mauritius) 1,904 450 (Malaysia) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 11 Lowest regional Best regional Best global Indicator Regional average performance performance performance container) Documents to import 11 (Malawi)* 5 (Mauritius)* 8 2 (Ireland)* (number) Time to import (days) 71 (Zimbabwe) 10 (Mauritius) 34 4 (Singapore) Cost to import (US$ 5,660 (Zimbabwe) 675 (Seychelles) 2,428 440 (Singapore) per container) Enforcing Contracts 187 (Angola) 42 (Tanzania) 119 1 (Luxembourg) (rank) Time (days) 1,296 (Angola) 410 (Zimbabwe) 693 150 (Singapore) 147.6 (Congo, Dem. Cost (% of claim) 14.3 (Tanzania) 56.7 0.1 (Bhutan) Rep.) Procedures (number) 46 (Angola) 28 (Botswana) 37 21 (Singapore)* Resolving Insolvency 189 (Angola) 34 (Botswana) 112 1 (Japan) (rank) Time (years) 5.2 (Congo, Dem. Rep.) 1.7 (Mauritius)* 2.7 0.4 (Ireland) Cost (% of estate) 30 (Madagascar) 9 (Zambia)* 18 1 (Norway) Recovery rate (cents on 4.5 (Congo, Dem. Rep.) 61.9 (Botswana) 26.6 92.8 (Japan) the dollar) * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website (http://www.doingbusiness.org). Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 12 STARTING A BUSINESS Formal registration of companies has many WHAT THE STARTING A BUSINESS immediate benefits for the companies and for INDICATORS MEASURE business owners and employees. Legal entities outlive their founders. Resources are pooled as several shareholders join forces to start a company. Procedures to legally start and operate a Formally registered companies have access to company (number) services and institutions from courts to banks as Preregistration (for example, name well as to new markets. And their employees can verification or reservation, notarization) benefit from protections provided by the law. An Registration in the economy’s largest additional benefit comes with limited liability business city companies. These limit the financial liability of company owners to their investments, so personal Postregistration (for example, social security assets of the owners are not put at risk. registration, company seal) Where governments make this process easy, more Time required to complete each procedure entrepreneurs start businesses in the formal sector, (calendar days) creating more good jobs and generating more Does not include time spent gathering revenue for the government. information What do the indicators cover? Each procedure starts on a separate day (2 procedures cannot start on the same day). Doing Business measures the ease of starting a Procedures that can be fully completed business in an economy by recording all online are an exception to this rule. procedures officially required or commonly done in practice by an entrepreneur to start up and Procedure considered completed once final document is received formally operate an industrial or commercial business—as well as the time and cost required to No prior contact with officials complete these procedures. It also records the paid-in minimum capital that companies must Cost required to complete each procedure deposit before registration. The ranking on the (% of income per capita) ease of starting a business is the simple average of Official costs only, no bribes the percentile rankings on the 4 component No professional fees unless services required indicators: procedures, time, cost and paid-in by law minimum capital requirement. Paid-in minimum capital (% of income To make the data comparable across economies, per capita) Doing Business uses several assumptions about the business and the procedures. It assumes that all Funds deposited in a bank or with a notary before registration (or within 3 months) information is readily available to the entrepreneur and that there has been no prior contact with • Conducts general commercial or industrial officials. It also assumes that the entrepreneur will activities. pay no bribes. And it assumes that the business: • Has a start-up capital of 10 times income per • Is a 100% domestically owned limited liability capita and has a turnover of at least 100 times company, located in the largest business city. income per capita. • Has between 10 and 50 employees. • Does not qualify for any special benefits. • Does not own real estate. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 13 STARTING A BUSINESS Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in an answer (figure 2.1). The average ranking of the Southern African Development Community (SADC) to region and comparator regions provide a useful start a business? The global rankings of these benchmark. economies on the ease of starting a business suggest Figure 2.1 How economies in Southern African Development Community (SADC) rank on the ease of starting a business Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 14 STARTING A BUSINESS The indicators underlying the rankings may be more cost and the paid-in minimum capital requirement revealing. Data collected by Doing Business show (figure 2.2). Comparing these indicators across the what it takes to start a business in each economy in region and with averages both for the region and for the region: the number of procedures, the time, the comparator regions can provide useful insights. Figure 2.2 What it takes to start a business in economies in Southern African Development Community (SADC) Procedures (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 15 STARTING A BUSINESS Time (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 16 STARTING A BUSINESS Cost (% of income per capita) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 17 STARTING A BUSINESS Paid-in minimum capital (% of income per capita) Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 18 STARTING A BUSINESS What are the changes over time? Economies around the world have taken steps making satisfaction and savings and more registered it easier to start a business—streamlining procedures businesses, financial resources and job opportunities. by setting up a one-stop shop, making procedures What business registration reforms has Doing Business simpler or faster by introducing technology, and recorded in Southern African Development reducing or eliminating minimum capital requirements. Community (SADC) (table 2.1)? Many have undertaken business registration reforms in stages—and often as part of a larger regulatory reform program. Among the benefits have been greater firm Table 2.1 How have economies in Southern African Development Community (SADC) made starting a business easier—or not? By Doing Business report year DB year Economy Reform Business registration was reduced to just eight days, DB2008 Madagascar streamlining operations at the one stop shop (GUIDE). Mauritius made starting a business faster by implementing a DB2008 Mauritius centralized database linking the company registry with tax, social security, and local authorities. Mozambique made starting a business faster by implementing electronic publication of the company start-up DB2008 Mozambique and eliminating the provisional registration. In addition, Mozambique made the use of notaries optional and computerized its registry and introduced flat registration fees. Tanzania made starting a business easier by decentralizing business registration by creating a business activities DB2008 Tanzania registration system and business registration centers in all the local authorities. The company seal became optional. All registration formalities can be completed at once at the DB2009 Angola Guichet Unico considerably reducing the number of procedures as well as time. Computerization of the registry resulted in more efficiency DB2009 Botswana and substantial time reduction. One stop shop reforms consolidated and simplified business registration processes and greater efficiency at registry DB2009 Lesotho resulted in license reforms substantially reducing the number of days. Professional tax was abolished reducing the cost and online DB2009 Madagascar publication cut time. On-line reforms further simplified registration process and DB2009 Mauritius formalities were streamlined reducing the number of Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 19 DB year Economy Reform procedures. The computerization of the registry reduced the registration DB2009 Namibia time tremendously. Amendments of the corporate law have simplified the start- DB2009 South Africa up process including abolishing the need to have a lawyer, reducing cost and time. The revamping of the company registry and the creation of a DB2009 Zambia one-stop shop resulted in tremendous time reduction. Botswana eased business start-up with more efficient tax DB2010 Botswana registration and obtaining of business license. Madagascar simplified business start-up through the streamlining of procedures at the one stop shop, elimination DB2010 Madagascar of stamp duty and elimination of the minimum capital requirement. Mozambique simplified business start up by eliminating the DB2010 Mozambique requirements of he minimum capital and bank deposit requirements . The Democratic Republic of Congo eased business start-up DB2011 Congo, Dem. Rep. by eliminating procedures, including the company seal. Mozambique eased business start-up by introducing a DB2011 Mozambique simplified licensing process. Zambia eased business start-up by eliminating the minimum DB2011 Zambia capital requirement. Zimbabwe eased business start-up by reducing registration DB2011 Zimbabwe fees and speeding up the name search process and company and tax registration. The Democratic Republic of Congo made business start-up DB2012 Congo, Dem. Rep. faster by reducing the time required to complete company registration and obtain a national identification number. Madagascar eased the process of starting a business by eliminating the minimum capital requirement, but also made DB2012 Madagascar it more difficult by introducing the requirement of obtaining a tax identification number. South Africa made starting a business easier by implementing its new company law, which eliminated the requirement to DB2012 South Africa reserve a company name and simplified the incorporation documents. The Democratic Republic of Congo made starting a business DB2013 Congo, Dem. Rep. easier by appointing additional public notaries. Lesotho made starting a business easier by creating a one- DB2013 Lesotho stop shop for company incorporation and by eliminating the requirements for paid-in minimum capital and for Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 20 DB year Economy Reform notarization of the articles of association. Madagascar made starting a business easier by allowing the DB2013 Madagascar one-stop shop to deal with the publication of the notice of incorporation. Tanzania made starting a business easier by eliminating the DB2013 Tanzania requirement for inspections by health, town and land officers as a prerequisite for a business license. The Democratic Republic of Congo made starting a business more complicated by increasing the minimum capital DB2014 Congo, Dem. Rep. requirement. At the same time, it made the process easier by reducing the time and by eliminating the requirement to obtain a certificate confirmi Madagascar made starting a business more difficult by DB2014 Madagascar increasing the cost to register with the National Center for Statistics. Swaziland made starting a business easier by shortening the DB2014 Swaziland administrative processing times for registering a new business and obtaining a trading license. Zambia made starting a business easier by raising the DB2014 Zambia threshold at which value added tax registration is required. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 21 DEALING WITH CONSTRUCTION PERMITS Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION public. But it needs to be efficient, to avoid PERMITS INDICATORS MEASURE excessive constraints on a sector that plays an important part in every economy. Where complying with building regulations is excessively costly in Procedures to legally build a warehouse (number) time and money, many builders opt out. They may pay bribes to pass inspections or simply build Submitting all relevant documents and illegally, leading to hazardous construction that obtaining all necessary clearances, licenses, puts public safety at risk. Where compliance is permits and certificates simple, straightforward and inexpensive, everyone Submitting all required notifications and is better off. receiving all necessary inspections What do the indicators cover? Obtaining utility connections for water, sewerage and a land telephone line Doing Business records the procedures, time and cost for a business in the construction industry to Registering the warehouse after its obtain all the necessary approvals to build a simple completion (if required for use as collateral or commercial warehouse in the economy’s main city, for transfer of warehouse) connect it to basic utilities and register the Time required to complete each procedure property so that it can be used as collateral or (calendar days) transferred to another entity. Does not include time spent gathering The ranking on the ease of dealing with information construction permits is the simple average of the Each procedure starts on a separate day. percentile rankings on its component indicators: Procedures that can be fully completed online procedures, time and cost. are an exception to this rule. To make the data comparable across economies, Procedure completed once final document is Doing Business uses several assumptions about the received business and the warehouse, including the utility No prior contact with officials connections. The business: Cost required to complete each procedure (% of income per capita) • Is a limited liability company operating in Official costs only, no bribes the construction business and located in the largest business city. • Will be connected to water, sewerage (sewage system, septic tank or their • Is domestically owned and operated. equivalent) and a fixed telephone line. • Has 60 builders and other employees. • The connection to each utility network will be The warehouse: 10 meters (32 feet, 10 inches) long. • Is a new construction (there was no • Will be used for general storage, such as of previous construction on the land). books or stationery (not for goods requiring special conditions). • Has complete architectural and technical plans prepared by a licensed architect or • Will take 30 weeks to construct (excluding all engineer. delays due to administrative and regulatory requirements). Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 22 DEALING WITH CONSTRUCTION PERMITS Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in construction permits suggest an answer (figure 3.1). Southern African Development Community (SADC) to The average ranking of the region and comparator legally build a warehouse? The global rankings of regions provide a useful benchmark. these economies on the ease of dealing with Figure 3.1 How economies in Southern African Development Community (SADC) rank on the ease of dealing with construction permits Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 23 DEALING WITH CONSTRUCTION PERMITS The indicators underlying the rankings may be more of procedures, the time and the cost (figure 3.2). revealing. Data collected by Doing Business show what Comparing these indicators across the region and with it takes to comply with formalities to build a averages both for the region and for comparator warehouse in each economy in the region: the number regions can provide useful insights. Figure 3.2 What it takes to comply with formalities to build a warehouse in economies in Southern African Development Community (SADC) Procedures (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 24 DEALING WITH CONSTRUCTION PERMITS Time (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 25 DEALING WITH CONSTRUCTION PERMITS Cost (% of income per capita) * Indicates a “no practice” mark. See the data notes for details. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 26 DEALING WITH CONSTRUCTION PERMITS What are the changes over time? Smart regulation ensures that standards are met while worked on consolidating permitting requirements. making compliance easy and accessible to all. What construction permitting reforms has Doing Coherent and transparent rules, efficient processes and Business recorded in Southern African Development adequate allocation of resources are especially Community (SADC) (table 3.1)? important in sectors where safety is at stake. Construction is one of them. In an effort to ensure building safety while keeping compliance costs reasonable, governments around the world have Table 3.1 How have economies in Southern African Development Community (SADC) made dealing with construction permits easier—or not? By Doing Business report year DB year Economy Reform Mauritius made obtaining construction permits easier by combining procedures of getting development permit and DB2008 Mauritius building permit, and it also set up an official time frame to process the permit application. Zambia made dealing with construction permits easier by DB2008 Zambia reducing the time to obtain utility connections Zimbabwe made obtaining construction permits more difficult by imposing inspections by Chief Building Inspector or Deputy Chief Inspecptor, which would take longer time. It DB2008 Zimbabwe also increased the fees due to inflation. Meanwhile, it is more time consuming to obtain water connections from local authorities. Angola made obtaining construction permits easier by reducing 2 procedures of getting approval from water and DB2009 Angola electricity companies, and reducing the time to deal with construction related approvals by 9 days. Instability and severe administrative backlog led to increase DB2009 Zimbabwe of costs for all construction permit related procedures by USD 14,851.7 and delays in approvals by 474 days. Tanzania introduced changes that resulted in a more difficult DB2010 Tanzania construction permitting process with additional procedures and cost. DB2011 Congo, Dem. Rep. Dealing with construction permits became easier in the Democratic Republic of Congo thanks to a reduction in the Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 27 DB year Economy Reform cost of a building permit from 1% of the estimated construction cost to 0.6% and a time limit for issuing building permits. The Democratic Republic of Congo reduced the DB2012 Congo, Dem. Rep. administrative costs of obtaining a construction permit. Malawi made dealing with construction permits more DB2013 Malawi expensive by increasing the cost to obtain the plan approval and to register the property. Tanzania made dealing with construction permits more DB2013 Tanzania expensive by increasing the cost to obtain a building permit. Botswana made dealing with construction permits easier by DB2014 Botswana eliminating the requirement for an environmental impact assessment for low-risk projects. Mozambique made dealing with construction permits easier by improving internal processes at the Department of DB2014 Mozambique Construction and Urbanization—though it also increased the fees for building permits and occupancy permits. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 28 GETTING ELECTRICITY Access to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITY for businesses. To counter weak electricity supply, many firms in developing economies have to rely INDICATORS MEASURE on self-supply, often at a prohibitively high cost. Whether electricity is reliably available or not, the Procedures to obtain an electricity first step for a customer is always to gain access by connection (number) obtaining a connection. Submitting all relevant documents and What do the indicators cover? obtaining all necessary clearances and permits Doing Business records all procedures required for Completing all required notifications and a local business to obtain a permanent electricity receiving all necessary inspections connection and supply for a standardized Obtaining external installation works and warehouse, as well as the time and cost to possibly purchasing material for these works complete them. These procedures include Concluding any necessary supply contract and applications and contracts with electricity utilities, obtaining final supply clearances from other agencies and the external and final connection works. The ranking on the Time required to complete each procedure ease of getting electricity is the simple average of (calendar days) the percentile rankings on its component Is at least 1 calendar day indicators: procedures, time and cost. To make the Each procedure starts on a separate day data comparable across economies, several assumptions are used. Does not include time spent gathering information The warehouse: Reflects the time spent in practice, with little • Is located in the economy’s largest follow-up and no prior contact with officials business city, in an area where other Cost required to complete each procedure (% warehouses are located. of income per capita) • Is not in a special economic zone where Official costs only, no bribes the connection would be eligible for subsidization or faster service. Excludes value added tax • Has road access. The connection works involve the crossing of a road or roads but are carried out on public land. • Is 150 meters long. • Is a new construction being connected to • Is to either the low-voltage or the medium- electricity for the first time. voltage distribution network and either • Has 2 stories, both above ground, with a overhead or underground, whichever is more total surface of about 1,300.6 square common in the economy and in the area meters (14,000 square feet), and is built on where the warehouse is located. The length a plot of 929 square meters (10,000 square of any connection in the customer’s private feet). domain is negligible. The electricity connection: • Requires crossing of a 10-meter road but all the works are carried out in a public land, so • Is a 3-phase, 4-wire Y, 140-kilovolt-ampere there is no crossing into other people's (kVA) (subscribed capacity) connection. private property. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 29 • Involves installing one electricity meter. The monthly electricity consumption will be 0.07 gigawatt-hour (GWh). The internal electrical wiring has been completed. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 30 GETTING ELECTRICITY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in electricity suggest an answer (figure 4.1). The average Southern African Development Community (SADC) to ranking of the region and comparator regions provide connect a warehouse to electricity? The global a useful benchmark. rankings of these economies on the ease of getting Figure 4.1 How economies in Southern African Development Community (SADC) rank on the ease of getting electricity Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 31 GETTING ELECTRICITY The indicators underlying the rankings may be more time and the cost (figure 4.2). Comparing these revealing. Data collected by Doing Business show what indicators across the region and with averages both for it takes to get a new electricity connection in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 4.2 What it takes to get an electricity connection in economies in Southern African Development Community (SADC) Procedures (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 32 GETTING ELECTRICITY Time (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 33 GETTING ELECTRICITY Cost (% of income per capita) Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 34 GETTING ELECTRICITY What are the changes over time? Obtaining an electricity connection is essential to safety in the connection process while keeping enable a business to conduct its most basic connection costs reasonable, governments around the operations. In many economies the connection world have worked to consolidate requirements for process is complicated by the multiple laws and obtaining an electricity connection. What reforms in regulations involved—covering service quality, general getting electricity has Doing Business recorded in safety, technical standards, procurement practices and Southern African Development Community (SADC) internal wiring installations. In an effort to ensure (table 4.1)? Table 4.1 How have economies in Southern African Development Community (SADC) made getting electricity easier—or not? By Doing Business report year DB year Economy Reform Mozambique made getting electricity more difficult by requiring authorization of a connection project by the DB2012 Mozambique Ministry of Energy and by adding an inspection of the completed external works. Angola made getting electricity easier by eliminating the requirement for customers applying for an electricity DB2013 Angola connection to obtain authorizations from the 2 utility companies. Namibia made getting electricity easier by reducing the time DB2013 Namibia required to provide estimates and external connection works and by lowering the connection costs. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 35 REGISTERING PROPERTY Ensuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTY Effective administration of land is part of that. If INDICATORS MEASURE formal property transfer is too costly or complicated, formal titles might go informal Procedures to legally transfer title on again. And where property is informal or poorly immovable property (number) administered, it has little chance of being accepted as collateral for loans—limiting access to Preregistration procedures (for example, finance. checking for liens, notarizing sales agreement, paying property transfer taxes) What do the indicators cover? Registration procedures in the economy’s Doing Business records the full sequence of largest business city procedures necessary for a business to purchase Postregistration procedures (for example, filing property from another business and transfer the title with the municipality) property title to the buyer’s name. The transaction Time required to complete each procedure is considered complete when it is opposable to (calendar days) third parties and when the buyer can use the property, use it as collateral for a bank loan or Does not include time spent gathering resell it. The ranking on the ease of registering information property is the simple average of the percentile Each procedure starts on a separate day. rankings on its component indicators: procedures, Procedures that can be fully completed online time and cost. are an exception to this rule. To make the data comparable across economies, Procedure considered completed once final several assumptions about the parties to the document is received transaction, the property and the procedures are No prior contact with officials used. Cost required to complete each procedure (% The parties (buyer and seller): of property value) • Are limited liability companies, 100% Official costs only, no bribes domestically and privately owned. No value added or capital gains taxes included • Are located in the periurban area of the economy’s largest business city. • Have 50 employees each, all of whom are nationals. • Has no mortgages attached and has been under the same ownership for the past 10 • Perform general commercial activities. years. The property (fully owned by the seller): • Consists of 557.4 square meters (6,000 square • Has a value of 50 times income per capita. feet) of land and a 10-year-old, 2-story The sale price equals the value. warehouse of 929 square meters (10,000 square feet). The warehouse is in good • Is registered in the land registry or condition and complies with all safety cadastre, or both, and is free of title standards, building codes and legal disputes. requirements. There is no heating system. The • Is located in a periurban commercial zone, property will be transferred in its entirety. and no rezoning is required. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 36 REGISTERING PROPERTY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in an answer (figure 5.1). The average ranking of the Southern African Development Community (SADC) to region and comparator regions provide a useful transfer property? The global rankings of these benchmark. economies on the ease of registering property suggest Figure 5.1 How economies in Southern African Development Community (SADC) rank on the ease of registering property Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 37 REGISTERING PROPERTY The indicators underlying the rankings may be more the time and the cost (figure 5.2). Comparing these revealing. Data collected by Doing Business show indicators across the region and with averages both what it takes to complete a property transfer in each for the region and for comparator regions can economy in the region: the number of procedures, provide useful insights. Figure 5.2 What it takes to register property in economies in Southern African Development Community (SADC) Procedures (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 38 REGISTERING PROPERTY Time (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 39 REGISTERING PROPERTY Cost (% of property value) * Indicates a “no practice” mark. See the data notes for details. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 40 REGISTERING PROPERTY What are the changes over time? Economies worldwide have been making it easier for buyers to use or mortgage their property earlier. What entrepreneurs to register and transfer property—such property registration reforms has Doing Business as by computerizing land registries, introducing time recorded in Southern African Development limits for procedures and setting low fixed fees. Many Community (SADC) (table 5.1)? have cut the time required substantially—enabling Table 5.1 How have economies in Southern African Development Community (SADC) made registering property easier—or not? By Doing Business report year DB year Economy Reform Property registration was made easier for women by allowing DB2008 Lesotho married women to transfer land without their husband's signature. Mauritius made registering property cheaper by reducing the DB2008 Mauritius property registration fee. Zimbabwe made registering property more expensive by DB2008 Zimbabwe increasing the conveyancers fees. Madagascar reformed its Land Registry, more staff was hired, more computers were added and the number of offices increased. In addition, Madagascar abolished two taxes and DB2009 Madagascar removed the mandatory stamps duty on documents. As a result, the number of procedures to register a property went down from 8 to 7, time was reduced by 60 days and cost by 4.04%. Mauritius abolished two procedures, the requirement to obtain clearance certificate from the Waste Water Authority DB2009 Mauritius and to obtain a tax clearance certificate for municipal taxes. This reform has reduced the number of procedures required to transfer property in Mauritius from 6 to 4. Zambia computerized its land registry and set up a customer service center to eliminate the backlog of registration DB2009 Zambia requests. As a result, the time required to register a property in Zambia is reduced from 70 to 39 days. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 41 DB year Economy Reform The land registry in Angola was digitized and split into two DB2010 Angola units covering half of the land, accelerating procedures necessary to transfer property in Luanda. Botwana made it more difficult to register property with the DB2010 Botswana addition of a procedure where the tax agency must be notified of the VAT payment Madagascar made it more costly to transfer a property by DB2010 Madagascar introducing the mandatory use of notary for property transactions. Mauritius has made it easier to register property by setting a DB2010 Mauritius statutory time limit of 15 days to obtain the final property title from the Land Registry Zimbabwe has reduced the cost to transfer a property by 15% DB2010 Zimbabwe of the value of the property. The Democratic Republic of Congo reduced by half the DB2011 Congo, Dem. Rep. property transfer tax to 3% of the property value. Malawi eased property transfers by cutting the wait for DB2011 Malawi consents and registration of legal instruments by half. Angola made transferring property less costly by reducing DB2012 Angola transfer taxes. Malawi made property registration slower by no longer DB2012 Malawi sustaining last year’s time improvement in Compliance Certificate processing times at the Ministry of Lands. Namibia made transferring property more expensive for DB2012 Namibia companies. South Africa made transferring property less costly and more DB2012 South Africa efficient by reducing the transfer duty and introducing electronic filing. Swaziland made transferring property quicker by streamlining DB2012 Swaziland the process at the land registry. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 42 DB year Economy Reform Zambia made registering property more costly by increasing DB2012 Zambia the property transfer tax rate. Mauritius made property transfers faster by implementing an DB2013 Mauritius electronic information management system at the Registrar- General’s Department. Namibia made transferring property more difficult by DB2013 Namibia requiring conveyancers to obtain a building compliance certificate beforehand. Lesotho made transferring property easier by streamlining DB2014 Lesotho procedures and increasing administrative efficiency. Malawi made transferring property easier by reducing the DB2014 Malawi stamp duty. Namibia made transferring property more expensive by DB2014 Namibia increasing the transfer and stamp duties. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 43 GETTING CREDIT Two types of frameworks can facilitate access to WHAT THE GETTING CREDIT INDICATORS credit and improve its allocation: credit information MEASURE systems and the borrowers and lenders’ rights in collateral and bankruptcy laws. Credit information Strength of legal rights index (0–10) systems enable lenders to view a potential borrower’s financial history (positive or negative)— Protection of rights of borrowers and lenders valuable information to consider when assessing through collateral laws risk. And they permit borrowers to establish a good Protection of secured creditors’ rights through credit history that will allow easier access to credit. bankruptcy laws Sound collateral laws enable businesses to use their assets, especially movable property, as security to Depth of credit information index (0–6) generate capital—while strong creditors’ rights Scope and accessibility of credit information have been associated with higher ratios of private distributed by public credit registries and sector credit to GDP. private credit bureaus What do the indicators cover? Public credit registry coverage (% of adults) Doing Business assesses the sharing of credit Number of individuals and firms listed in information and the legal rights of borrowers and public credit registry as percentage of adult lenders with respect to secured transactions population through 2 sets of indicators. The depth of credit information index measures rules and practices Private credit bureau coverage (% of adults) affecting the coverage, scope and accessibility of Number of individuals and firms listed in credit information available through a public credit largest private credit bureau as percentage of registry or a private credit bureau. The strength of adult population legal rights index measures whether certain features that facilitate lending exist within the applicable collateral and bankruptcy laws. Doing Business uses case scenarios to determine the scope of the • Has up to 100 employees. secured transactions system, involving a secured • Is 100% domestically owned, as is the lender. borrower and a secured lender and examining legal The ranking on the ease of getting credit is based on restrictions on the use of movable collateral. These the percentile rankings on the sum of its component scenarios assume that the borrower: indicators: the depth of credit information index and • Is a private, incorporated, limited liability the strength of legal rights index. company. • Has its headquarters and only base of operations in the largest business city. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 44 GETTING CREDIT Where do the region’s economies stand today? How well do the credit information systems and economies on the ease of getting credit suggest an collateral and bankruptcy laws in economies in answer (figure 6.1). The average ranking of the region Southern African Development Community (SADC) and comparator regions provide a useful benchmark. facilitate access to credit? The global rankings of these Figure 6.1 How economies in Southern African Development Community (SADC) rank on the ease of getting credit Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 45 GETTING CREDIT Another way to assess how well regulations and particular score on the strength of legal rights index. institutions support lending and borrowing in the Figure 6.3 shows the same thing for the depth of credit region is to look at the distribution of its economies by information index. Higher scores indicate stronger their scores on the getting credit indicators. Figure 6.2 legal rights for borrowers and lenders and more credit shows how many economies in the region received a information. Figure 6.2 How strong are legal rights for borrowers Figure 6.3 How extensive—and how accessible—is and lenders in economies in Southern African credit information in economies in Southern African Development Community (SADC)? Development Community (SADC)? Number of economies in region with each score on strength Number of economies in region with each score on depth of of legal rights index (0–10) credit information index (0–6) Note: Higher scores indicate that collateral and bankruptcy Note: Higher scores indicate the availability of more credit laws are better designed to facilitate access to credit. information, from either a credit registry or a credit bureau, Source: Doing Business database. to facilitate lending decisions. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 46 GETTING CREDIT What are the changes over time? When economies strengthen the legal rights of lenders access to credit. What credit reforms has Doing and borrowers under collateral and bankruptcy laws, Business recorded in Southern African Development and increase the scope, coverage and accessibility of Community (SADC) (table 6.1)? credit information, they can increase entrepreneurs’ Table 6.1 How have economies in Southern African Development Community (SADC) made getting credit easier— or not? By Doing Business report year DB year Economy Reform Lenders are now required to check their overall debt levels DB2008 South Africa before granting loans and guarantees borrowers the right to access and challenge their credit records. The public credit registry in Mauritius eliminated the minimum loan requirement threshold to report credits in DB2009 Mauritius March 2007. The credit registry now captures information on all credits extended by the financial system. Mauritius has strengthened access to credit information by allowing the licensing of private credit information bureaus, DB2010 Mauritius and by expanding the coverge of the bureau to all credit facilities. Zambia strengthened access to credit information by making it mandatory for banks and non-bank financial instituitions DB2010 Zambia registered with Bank of Zambia to use credit reference reports and provide data to the Bureau. Angola strengthened its credit information system by DB2012 Angola adopting new rules for credit bureaus and guaranteeing the right of borrowers to inspect their data. Madagascar improved its credit information system by eliminating the minimum threshold for loans included in the DB2012 Madagascar database and making it mandatory for banks to share credit information with the credit bureau. Malawi improved its credit information system by passing a DB2012 Malawi new law allowing the creation of a private credit bureau. DB2013 Mauritius Mauritius improved access to credit information by starting to collect payment information from retailers and beginning to Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 47 DB year Economy Reform distribute both positive and negative information. The Democratic Republic of Congo strengthened its secured transactions system by adopting the OHADA (Organization DB2014 Congo, Dem. Rep. for the Harmonization of Business Law in Africa) Uniform Act on Secured Transactions. The new law broadens the range of assets that can be us Mauritius improved access to credit information by DB2014 Mauritius expanding the scope of credit information and increasing the coverage of the historical data distributed from 2 years to 3. Tanzania improved its credit information system through new regulations that provide for the licensing of credit reference DB2014 Tanzania bureaus and outline the functions of the credit reference data bank. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 48 PROTECTING INVESTORS Protecting investors matters for the ability of WHAT THE PROTECTING INVESTORS companies to raise the capital they need to grow, INDICATORS MEASURE innovate, diversify and compete. If the laws do not protect minority shareholders, investors may be Extent of disclosure index (0–10) reluctant to provide funding to companies through the purchase of shares unless they become the Approval process for related-party controlling shareholders. Effective regulations define transactions related-party transactions precisely, promote clear Disclosure requirements in case of related- and efficient disclosure requirements, require party transactions shareholder participation in major decisions of the company and set detailed standards of accountability Extent of director liability index (0–10) for company insiders. Ability of minority shareholders to file a direct or derivative lawsuit What do the indicators cover? Ability of minority shareholders to hold Doing Business measures the strength of minority interested parties and members of the shareholder protections against directors’ use of approving body liable for prejudicial related- corporate assets for personal gain—or self-dealing. party transactions The indicators distinguish 3 dimensions of investor Available legal remedies (damages, protections: transparency of related-party disgorgement of profits, fines, imprisonment transactions (extent of disclosure index), liability for and rescission of the transaction) self-dealing (extent of director liability index) and minority shareholders’ access to evidence before and Ease of shareholder suits index (0–10) during (ease of shareholder suits index). The ranking Access to internal corporate documents on the strength of investor protection index is the (directly or through a government inspector) simple average of the percentile rankings on these 3 indices. To make the data comparable across Documents and information available during trial economies, a case study uses several assumptions about the business and the transaction. Strength of investor protection index (0–10) The business (Buyer): Simple average of the extent of disclosure, extent of director liability and ease of • Is a publicly traded corporation listed on the shareholder suits indices economy’s most important stock exchange (or at least a large private company with multiple shareholders). • The price is higher than the going price for used trucks, but the transaction goes forward. • Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of • All required approvals are obtained, and all Buyer where permitted, even if this is not required disclosures made, though the specifically required by law. transaction is prejudicial to Buyer. The transaction involves the following details: • Shareholders sue the interested parties and the members of the board of directors. • Mr. James, a director and the majority shareholder of the company, proposes that the company purchase used trucks from another company he owns. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 49 Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 50 PROTECTING INVESTORS Where do the region’s economies stand today? How strong are investor protections against self- the indicator does not measure all aspects related to dealing in economies in Southern African the protection of minority investors, a higher ranking Development Community (SADC)? The global rankings does indicate that an economy’s regulations offer of these economies on the strength of investor stronger investor protections against self-dealing in protection index suggest an answer (figure 7.1). While the areas measured. Figure 7.1 How economies in Southern African Development Community (SADC) rank on the strength of investor protection index Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 51 PROTECTING INVESTORS But the overall ranking on the strength of investor indices may also be revealing (figure 7.2). Higher protection index tells only part of the story. Economies scores indicate stronger investor protections. may offer strong protections in some areas but not Comparing the scores across the region on the others. So the number of economies in Southern strength of investor protection index and with African Development Community (SADC) that have a averages both for the region and for comparator certain score recorded on the extent of disclosure, regions can provide useful insights. extent of director liability and ease of shareholder suits Figure 7.2 How strong are investor protections in economies in Southern African Development Community (SADC)? Strength of investor protection index (0–10) Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 52 PROTECTING INVESTORS Extent of disclosure index (0–10) Extent of director liability index (0–10) Number of economies in region with each score on extent of Number of economies in region with each score on extent of disclosure index (0–10) director liability index (0–10) Note: Higher scores indicate greater disclosure. Note: Higher scores indicate greater liability of directors. Source: Doing Business database. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 53 PROTECTING INVESTORS Ease of shareholder suits index (0–10) Number of economies in region with each score on ease of shareholder suits index (0–10) Note: Higher scores indicate greater powers of shareholders to challenge the transaction. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 54 PROTECTING INVESTORS What are the changes over time? Economies with the strongest protections of minority protections may move ahead on different fronts—such investors from self-dealing require detailed disclosure as through new or amended company laws, securities and define clear duties for directors. They also have regulations or revisions to court procedures. What well-functioning courts and up-to-date procedural investor protection reforms has Doing Business rules that give minority shareholders the means to recorded in Southern African Development prove their case and obtain a judgment within a Community (SADC) (table 7.1)? reasonable time. So reforms to strengthen investor Table 7.1 How have economies in Southern African Development Community (SADC) strengthened investor protections—or not? By Doing Business report year DB year Economy Reform Mozambique strengthened investor protections by enacting a new Commercial Code, which allows shareholders to bring derivative suits against members of the board of directors, and which introduces detailed duties and liability for major DB2008 Mozambique shareholders and directors. It also expands the scope of accessible company information and the right to request the appointment of an expert to investigate the activities of the company. Botswana strengthened investor protections by requiring that related-party transactions be approved by the shareholders DB2009 Botswana meeting, and by allowing shareholders to sue directors and obtain the payment of damages if successful. Swaziland strengthened investor protections by requiring greater corporate disclosure, higher standards of accountability for company directors and greater access to DB2011 Swaziland corporate information for minority investors. Swaziland reduced the time to import by implementing an electronic data interchange system for customs at its border posts. Lesotho strengthened investor protections by increasing the disclosure requirements for related-party transactions and DB2013 Lesotho improving the liability regime for company directors in cases of abusive related-party transactions. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 55 DB year Economy Reform The Democratic Republic of Congo strengthened investor protections by adopting the OHADA Uniform Act on DB2014 Congo, Dem. Rep. Commercial Companies and Economic Interest Groups, which introduces additional approval and disclosure requirements for related-party transactions and Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 56 PAYING TAXES Taxes are essential. They fund the public amenities, WHAT THE PAYING TAXES INDICATORS infrastructure and services that are crucial for a MEASURE properly functioning economy. But the level of tax rates needs to be carefully chosen—and needless Tax payments for a manufacturing company complexity in tax rules avoided. According to in 2012 (number per year adjusted for Doing Business data, in economies where it is more electronic or joint filing and payment) difficult and costly to pay taxes, larger shares of economic activity end up in the informal sector— Total number of taxes and contributions paid, including consumption taxes (value added tax, where businesses pay no taxes at all. sales tax or goods and service tax) What do the indicators cover? Method and frequency of filing and payment Using a case scenario, Doing Business measures the taxes and mandatory contributions that a Time required to comply with 3 major taxes medium-size company must pay in a given year as (hours per year) well as the administrative burden of paying taxes Collecting information and computing the tax and contributions. This case scenario uses a set of payable financial statements and assumptions about Completing tax return forms, filing with transactions made over the year. Information is proper agencies also compiled on the frequency of filing and Arranging payment or withholding payments as well as time taken to comply with tax laws. The ranking on the ease of paying taxes is Preparing separate tax accounting books, if the simple average of the percentile rankings on required its component indicators: number of annual Total tax rate (% of profit) payments, time and total tax rate, with a threshold 1 being applied to the total tax rate. To make the Profit or corporate income tax data comparable across economies, several Social contributions and labor taxes paid by assumptions about the business and the taxes and the employer contributions are used. Property and property transfer taxes • TaxpayerCo is a medium-size business that Dividend, capital gains and financial started operations on January 1, 2011. transactions taxes • The business starts from the same financial Waste collection, vehicle, road and other taxes position in each economy. All the taxes and mandatory contributions paid during • Taxes and mandatory contributions include the second year of operation are recorded. corporate income tax, turnover tax and all labor taxes and contributions paid by the • Taxes and mandatory contributions are company. measured at all levels of government. • A range of standard deductions and exemptions are also recorded. 1 The threshold is defined as the highest total tax rate among the top 15% of economies in the ranking on the total tax rate. It is calculated and adjusted on a yearly basis. The threshold is not based on any economic theory of an “optimal tax rate” that minimizes distortions or maximizes efficiency in the tax system of an economy overall. Instead, it is mainly empirical in nature, set at the lower end of the distribution of tax rates levied on medium-size enterprises in the manufacturing sector as observed through the paying taxes indicators. This reduces the bias in the indicators toward economies that do not need to levy significant taxes on companies like the Doing Business standardized case study company because they raise public revenue in other ways—for example, through taxes on foreign companies, through taxes on sectors other than manufacturing or from natural resources (all of which are outside the scope of the methodology). This year’s threshold is 25.5%. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 57 PAYING TAXES Where do the region’s economies stand today? What is the administrative burden of complying with ease of paying taxes offer useful information for taxes in economies in Southern African Development assessing the tax compliance burden for businesses Community (SADC)—and how much do firms pay in (figure 8.1). The average ranking of the region and taxes? The global rankings of these economies on the comparator regions provide a useful benchmark. Figure 8.1 How economies in Southern African Development Community (SADC) rank on the ease of paying taxes Note: For all economies with a total tax rate below the threshold of 25.5% applied in DB2014, the total tax rate is set at 25.5% for the purpose of calculating the ranking on the ease of paying taxes. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 58 PAYING TAXES The indicators underlying the rankings may be more as well as the total tax rate (figure 8.2). Comparing revealing. Data collected by Doing Business show what these indicators across the region and with averages it takes to comply with tax regulations in each both for the region and for comparator regions can economy in the region—the number of payments per provide useful insights. year and the time required to prepare and file taxes— Figure 8.2 How easy is it to pay taxes in economies in Southern African Development Community (SADC)—and what are the total tax rates? Payments (number per year) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 59 PAYING TAXES Time (hours per year) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 60 PAYING TAXES Total tax rate (% of profit) Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 61 PAYING TAXES What are the changes over time? Economies around the world have made paying taxes concrete results. Some economies simplifying tax faster and easier for businesses—such as by payment and reducing rates have seen tax revenue consolidating filings, reducing the frequency of rise. What tax reforms has Doing Business recorded in payments or offering electronic filing and payment. Southern African Development Community (SADC) Many have lowered tax rates. Changes have brought (table 8.1)? Table 8.1 How have economies in Southern African Development Community (SADC) made paying taxes easier— or not? By Doing Business report year DB year Economy Reform Lesotho reduced the tax burden for companies by reducing DB2008 Lesotho CIT and made it easier to pay taxes for companies by spreading the use of e-filing and e-payment Mauritius reduced the tax burden for companies by reducing DB2008 Mauritius CIT DB2008 Seychelles No impact on Doing Business 2008 indicators. South Africa eased the tax burden on business by abolishing DB2008 South Africa the stamp duty. Zimbabwe increased the tax on check transaction and DB2008 Zimbabwe introduced a new, more burdensome form for the payment of CIT DB2009 Botswana Training levy of 0.2% introduced effective 1 January 2008. Capital gains tax was abolished effective 1 January 2008. Effective 1 January 2008, corporate income tax is reduced DB2009 Madagascar from 30% to 25%, and several taxes, for example proessional tax and stamp duty, have been abolished. VAT rate has been increased from 18% to 20% New Corporate Inceome Tax Code introduced, which has a simplified scheme for companies with annual revenues of up DB2009 Mozambique to MZM 2.5 million in the previous year (previously MZM 1.5 million). A new VAT Act effective January 2008. Its new simplified regime for smaller companies applies to taxable Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 62 DB year Economy Reform persons with revenues between MZM 750,000 (previously MZM 100,000) and MZM 2,500,000 (no change). Electronic tax forms introduced for social security taxes. Regional Establishment Levy and Regional Services Levy were DB2009 South Africa abolished. Effective 2008, amendments will be made to the Income Tax Act in order to update, strengthen, and remove ambiguities in these laws and to enhance the effectiveness of tax administration. The depreciation allowance for capital DB2009 Zambia equipment will be reduced from 100% to 25% per annum. Ring-fencing introduced for capital expenditure on new projects, and only deductible sfter production starts. The VAT Act will be substantively amended and the rate of VAT will be reduced to between 16.5% and 15%. Angola made it easier to pay taxes by introducing mandatory DB2010 Angola electronic filing of social security for businesses with more than 20 employees. Congo, Dem. Rep. has sought to increase its tax revenue by DB2010 Congo, Dem. Rep. raising sales tax from 13% to 15%. South Africa eased the tax burden on buisness by abolishing DB2010 South Africa the stamp duty. DB2011 Madagascar Madagascar continued to reduce corporate tax rates. DB2011 Mauritius Mauritius introduced a new corporate social responsibility tax. The Seychelles removed the tax-free threshold limit and DB2011 Seychelles lowered corporate income tax rates. Zimbabwe reduced the corporate income tax rate from 30% to 25%, lowered the capital gains tax from 20% to 5% and DB2011 Zimbabwe simplified the payment of corporate income tax by allowing quarterly payment through commercial banks. The Democratic Republic of Congo made paying taxes easier DB2012 Congo, Dem. Rep. for firms by replacing the sales tax with a value added tax. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 63 DB year Economy Reform The Seychelles made paying taxes less costly for firms by DB2012 Seychelles eliminating the social security tax. Botswana made paying taxes more costly for companies by DB2013 Botswana increasing the profit tax rate. Malawi introduced a mandatory pension contribution for DB2013 Malawi companies. DB2013 Swaziland Swaziland introduced value added tax. The Democratic Republic of Congo made paying taxes more costly for companies by increasing the employers' social DB2014 Congo, Dem. Rep. security contribution rate—though it also reduced the corporate income tax rate. Madagascar made paying taxes easier and less costly for companies by training taxpayers in the use of the online DB2014 Madagascar system for value added tax declarations and by reducing the corporate income tax rate. The Seychelles made paying taxes more complicated for DB2014 Seychelles companies by introducing a value added tax. South Africa made paying taxes easier for companies by DB2014 South Africa replacing the secondary tax on companies with a dividend tax borne by shareholders. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 64 TRADING ACROSS BORDERS In today’s globalized world, making trade between WHAT THE TRADING ACROSS BORDERS economies easier is increasingly important for INDICATORS MEASURE business. Excessive document requirements, burdensome customs procedures, inefficient port operations and inadequate infrastructure all lead to extra costs and delays for exporters and importers, Documents required to export and import stifling trade potential. Research shows that (number) exporters in developing countries gain more from Bank documents a 10% drop in their trading costs than from a Customs clearance documents similar reduction in the tariffs applied to their products in global markets. Port and terminal handling documents What do the indicators cover? Transport documents Doing Business measures the time and cost Time required to export and import (days) (excluding tariffs and the time and cost for sea Obtaining, filling out and submitting all the transport) associated with exporting and documents importing a standard shipment of goods by sea transport, and the number of documents necessary Inland transport and handling to complete the transaction. The indicators cover Customs clearance and inspections procedural requirements such as documentation Port and terminal handling requirements and procedures at customs and other regulatory agencies as well as at the port. They also Does not include sea transport time cover trade logistics, including the time and cost of inland transport to the largest business city. The Cost required to export and import (US$ per container) ranking on the ease of trading across borders is the simple average of the percentile rankings on its All documentation component indicators: documents, time and cost Inland transport and handling to export and import. Customs clearance and inspections To make the data comparable across economies, Port and terminal handling Doing Business uses several assumptions about the business and the traded goods. Official costs only, no bribes The business: • Do not require refrigeration or any other special environment. • Is of medium size and employs 60 people. • Do not require any special phytosanitary or • Is located in the periurban area of the environmental safety standards other than economy’s largest business city. accepted international standards. • Is a private, limited liability company, • Are one of the economy’s leading export or domestically owned, formally registered import products. and operating under commercial laws and regulations of the economy. • Are transported in a dry-cargo, 20-foot full container load. The traded goods: • Are not hazardous nor do they include military items. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 65 TRADING ACROSS BORDERS Where do the region’s economies stand today? How easy it is for businesses in economies in Southern suggest an answer (figure 9.1). The average ranking of African Development Community (SADC) to export the region and comparator regions provide a useful and import goods? The global rankings of these benchmark. economies on the ease of trading across borders Figure 9.1 How economies in Southern African Development Community (SADC) rank on the ease of trading across borders Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 66 TRADING ACROSS BORDERS The indicators underlying the rankings may be more documents, the time and the cost (figure 9.2). revealing. Data collected by Doing Business show what Comparing these indicators across the region and with it takes to export or import a standard container of averages both for the region and for comparator goods in each economy in the region: the number of regions can provide useful insights. Figure 9.2 What it takes to trade across borders in economies in Southern African Development Community (SADC) Documents to export (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 67 TRADING ACROSS BORDERS Time to export (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 68 TRADING ACROSS BORDERS Cost to export (US$ per container) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 69 TRADING ACROSS BORDERS Documents to import (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 70 TRADING ACROSS BORDERS Time to import (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 71 TRADING ACROSS BORDERS Cost to import (US$ per container) Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 72 TRADING ACROSS BORDERS What are the changes over time? In economies around the world, trading across borders systems. These changes help improve their trading as measured by Doing Business has become faster and environment and boost firms’ international easier over the years. Governments have introduced competitiveness. What trade reforms has Doing tools to facilitate trade—including single windows, Business recorded in Southern African Development risk-based inspections and electronic data interchange Community (SADC) (table 9.1)? Table 9.1 How have economies in Southern African Development Community (SADC) made trading across borders easier—or not? By Doing Business report year DB year Economy Reform Madagascar made trading across borders easier by DB2008 Madagascar implementing an EDI system, improving port infrastructure, and streamlining document requirements. Mauritius eased trading across borders by implementing a DB2008 Mauritius new computerized risk management system for inspections. Botswana sped up customs clearance on its border with South Africa and trained its customs officers in the use of the DB2009 Botswana EDI system, resulting in quicker processing of trade documents. Implementation of EDI, a single window, risk-based DB2009 Madagascar inspections, and improvement of port infrastructure led to a decrease in export and import time. Angola sped the process of trading across borders with a DB2010 Angola customs improvement program that streamlined procedures and decreased the time and cost of trade. In Congo Dem. Rep., the participation of private companies in the terminal handling process at the port of Matadi has DB2010 Congo, Dem. Rep. improved the quality of service reducing the needed time to handle cargos. The implementation of a risk-based inspection regime and a DB2010 Malawi post-destination clearance program for pre-approved traders has reduced the delays for clearing goods in Malawi. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 73 DB year Economy Reform Mauritius introduced the electronic submission of the DB2010 Mauritius customs declaration and bill of lading without requirement of physical copies, thus speeding up trade process. Administrative improvements at customs has helped reduced DB2010 Mozambique the time required to clear goods traded in Mozambique. Angola reduced the time for trading across borders by DB2011 Angola making investments in port infrastructure and administration. Madagascar improved communication and coordination between customs and the terminal port operators through its DB2011 Madagascar single-window system (GASYNET), reducing both the time and the cost to export and import. Swaziland reduced the import time of trading across borders DB2011 Swaziland by implementing an electronic data interchange system for customs at its border posts. Zambia eased trade by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs DB2011 Zambia declarations and introducing scanning machines at border posts. The Seychelles made trading across borders faster by DB2012 Seychelles introducing electronic submission of customs documents. Tanzania made trading across borders faster by implementing DB2012 Tanzania the Pre-Arrival Declaration (PAD) system and electronic submission of customs declaration. In Botswana exporting and importing became faster thanks to the introduction of a scanner by the country’s customs DB2013 Botswana authority and an upgrade of South Africa’s customs declaration system, both at the Kopfontein–Tlokweng border post. Trading across borders in Malawi became easier thanks to DB2013 Malawi improvements in customs clearance procedures and transport links between the port of Beira in Mozambique and Blantyre. DB2013 South Africa South Africa reduced the time and documents required to Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 74 DB year Economy Reform export and import through its ongoing customs modernization program. Tanzania made importing more difficult by introducing a DB2013 Tanzania requirement to obtain a certificate of conformity before the imported goods are shipped. Angola increased documentation requirements for cross- DB2014 Angola border trade by introducing a mandatory registration for all traders and a new license for export and import transactions. Madagascar made trading across borders easier by rolling out DB2014 Madagascar an online platform linking trade operators with government agencies involved in the trade process and customs clearance. Mozambique made trading across borders easier by DB2014 Mozambique implementing an electronic single-window system. Swaziland made trading across borders easier by streamlining DB2014 Swaziland the process for obtaining a certificate of origin. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 75 ENFORCING CONTRACTS Effective commercial dispute resolution has many WHAT THE ENFORCING CONTRACTS benefits. Courts are essential for entrepreneurs INDICATORS MEASURE because they interpret the rules of the market and protect economic rights. Efficient and transparent Procedures to enforce a contract through courts encourage new business relationships the courts (number) because businesses know they can rely on the courts if a new customer fails to pay. Speedy trials Steps to file and serve the case are essential for small enterprises, which may lack Steps for trial and judgment the resources to stay in business while awaiting the Steps to enforce the judgment outcome of a long court dispute. What do the indicators cover? Time required to complete procedures (calendar days) Doing Business measures the efficiency of the Time to file and serve the case judicial system in resolving a commercial dispute before local courts. Following the step-by-step Time for trial and obtaining judgment evolution of a standardized case study, it collects Time to enforce the judgment data relating to the time, cost and procedural complexity of resolving a commercial lawsuit. The Cost required to complete procedures (% of ranking on the ease of enforcing contracts is the claim) simple average of the percentile rankings on its Average attorney fees component indicators: procedures, time and cost. Court costs The dispute in the case study involves the breach Enforcement costs of a sales contract between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. To make the data comparable across economies, Doing Business uses several assumptions about the case: • The seller and buyer are located in the economy’s largest business city. • The dispute on the quality of the goods requires an expert opinion. • The buyer orders custom-made goods, then fails to pay. • The judge decides in favor of the seller; there is no appeal. • The seller sues the buyer before a competent court. • The seller enforces the judgment through a public sale of the buyer’s movable assets. • The value of the claim is 200% of income per capita. • The seller requests a pretrial attachment to secure the claim. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 76 ENFORCING CONTRACTS Where do the region’s economies stand today? How efficient is the process of resolving a commercial contracts suggest an answer (figure 10.1). The average dispute through the courts in economies in Southern ranking of the region and comparator regions provide African Development Community (SADC)? The global a useful benchmark. rankings of these economies on the ease of enforcing Figure 10.1 How economies in Southern African Development Community (SADC) rank on the ease of enforcing contracts Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 77 ENFORCING CONTRACTS The indicators underlying the rankings may also be procedures, the time and the cost (figure 10.2). revealing. Data collected by Doing Business show what Comparing these indicators across the region and with it takes to enforce a contract through the courts in averages both for the region and for comparator each economy in the region: the number of regions can provide useful insights. Figure 10.2 What it takes to enforce a contract through the courts in economies in Southern African Development Community (SADC) Procedures (number) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 78 ENFORCING CONTRACTS Time (days) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 79 ENFORCING CONTRACTS Cost (% of claim) Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 80 ENFORCING CONTRACTS What are the changes over time? Economies in all regions have improved contract periodic reviews to clear inactive cases from the docket enforcement in recent years. A judiciary can be and by making procedures faster. What reforms improved in different ways. Higher-income economies making it easier (or more difficult) to enforce contracts tend to look for ways to enhance efficiency by has Doing Business recorded in Southern African introducing new technology. Lower-income economies Development Community (SADC) (table 10.1)? often work on reducing backlogs by introducing Table 10.1 How have economies in Southern African Development Community (SADC) made enforcing contracts easier—or not? By Doing Business report year DB year Economy Reform In the Democratic Republic of Congo, the operation of the DB2008 Congo, Dem. Rep. commercial court made commercial dispute resolution more efficient. Malawi has made enforcing contracts easier by opening a DB2008 Malawi commercial court and hiring new judges. Mozambique improved commercial dispute resolution in DB2008 Mozambique Maputo by hiring more specialised judges and reducing the time limits in enforcement procedures. In Mozambique more than 20 judges were added to the judiciary, all of them receiving formal training. Court DB2009 Mozambique administrators were introduced, alleviating the administrative burdens on the judges. At the same time the country introduced performance measurement for judges. The introduction of case management and improved use of DB2010 Botswana information technology has contributed to more efficient resolution of commercial disputes in Botswana. Mauritius set up a specialized commercial division of its DB2010 Mauritius Supreme Court, thus improving contract enforcement. Malawi simplified the enforcement of contracts by raising the DB2011 Malawi ceiling for commercial claims that can be brought to the magistrates court. Mauritius speeded up the resolution of commercial disputes DB2011 Mauritius by recruiting more judges and adding more courtrooms. Zambia improved contract enforcement by introducing an DB2011 Zambia electronic case management system in the courts that provides electronic referencing of cases, a database of laws, Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 81 DB year Economy Reform real-time court reporting and public access to court records. Lesotho made enforcing contracts easier by launching a DB2012 Lesotho specialized commercial court. The Seychelles expanded the jurisdiction of the lower court, DB2012 Seychelles increasing the time required to enforce contracts. Mauritius made enforcing contracts easier by liberalizing the DB2014 Mauritius profession of ushers, providing competitive options for litigants to enforce binding decisions. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 82 RESOLVING INSOLVENCY A robust bankruptcy system functions as a filter, WHAT THE RESOLVING INSOLVENCY ensuring the survival of economically efficient INDICATORS MEASURE companies and reallocating the resources of inefficient ones. Fast and cheap insolvency proceedings result in the speedy return of Time required to recover debt (years) businesses to normal operation and increase Measured in calendar years returns to creditors. By improving the expectations of creditors and debtors about the outcome of Appeals and requests for extension are insolvency proceedings, well-functioning included insolvency systems can facilitate access to finance, Cost required to recover debt (% of debtor’s save more viable businesses and thereby improve estate) growth and sustainability in the economy overall. Measured as percentage of estate value What do the indicators cover? Court fees Doing Business studies the time, cost and outcome Fees of insolvency administrators of insolvency proceedings involving domestic entities. It does not measure insolvency Lawyers’ fees proceedings of individuals and financial Assessors’ and auctioneers’ fees institutions. The data are derived from survey Other related fees responses by local insolvency practitioners and verified through a study of laws and regulations as Outcome well as public information on bankruptcy systems. Whether business continues operating as a The ranking on the ease of resolving insolvency is going concern or business assets are sold based on the recovery rate, which is recorded as piecemeal cents on the dollar recouped by creditors through reorganization, liquidation or debt enforcement Recovery rate for creditors (cents on the (foreclosure) proceedings. The recovery rate is a dollar) function of time, cost and other factors, such as Measures the cents on the dollar recovered lending rate and the likelihood of the company by creditors continuing to operate. Present value of debt recovered To make the data comparable across economies, Official costs of the insolvency proceedings Doing Business uses several assumptions about the are deducted business and the case. It assumes that the Depreciation of furniture is taken into company: account • Is a domestically owned, limited liability Outcome for the business (survival or not) company operating a hotel. affects the maximum value that can be recovered • Operates in the economy’s largest business city. • Has 201 employees, 1 main secured • Has a higher value as a going concern—and creditor and 50 unsecured creditors. that the efficient outcome is either reorganization or sale as a going concern, not piecemeal liquidation. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 83 RESOLVING INSOLVENCY Where do the region’s economies stand today? How efficient are insolvency proceedings in economies regions provide a useful benchmark for assessing the in Southern African Development Community (SADC)? efficiency of insolvency proceedings. Speed, low costs The global rankings of these economies on the ease of and continuation of viable businesses characterize the resolving insolvency suggest an answer (figure 11.1). top-performing economies. The average ranking of the region and comparator Figure 11.1 How economies in Southern African Development Community (SADC) rank on the ease of resolving insolvency Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 84 RESOLVING INSOLVENCY The indicators underlying the rankings may be more Comparing these indicators across the region and with revealing. Data collected by Doing Business show the averages both for the region and for comparator average time and cost required to resolve insolvency regions can provide useful insights. as well as the average recovery rate (figure 11.2). Figure 11.2 How efficient is the insolvency process in economies in Southern African Development Community (SADC) Time (years) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 85 RESOLVING INSOLVENCY Cost (% of estate) Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 86 RESOLVING INSOLVENCY Recovery rate (cents on the dollar) * Indicates a “no practice” mark. See the data notes for details. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 87 RESOLVING INSOLVENCY What are the changes over time? A well-balanced bankruptcy system distinguishes change. Many recent reforms of bankruptcy laws have companies that are financially distressed but been aimed at helping more of the viable businesses economically viable from inefficient companies that survive. What insolvency reforms has Doing Business should be liquidated. But in some insolvency systems recorded in Southern African Development even viable businesses are liquidated. This is starting to Community (SADC) (table 11.1)? Table 11.1 How have economies in Southern African Development Community (SADC) made resolving insolvency easier—or not? By Doing Business report year DB year Economy Reform Botswana amended its Employment Act to increase the priority ranking of employee benefits to preferred status. Botswana also amended the Insolvency Act to criminalize DB2008 Botswana false statements by the insolvent company which may affect a prospective buyer’s decision whether or not to purchase the company as a going concern. Mauritius adopted legislation that made the process of sale DB2008 Mauritius of immovable property after default on a credit agreement more efficient and less susceptible to abuse by creditors. Malawi introduced a new law limiting the liquidator's fees DB2010 Malawi during insolvency procedures. A new insolvency law in Mauritius introduces a rehabilitation procedure for companies as an alternative to winding up, and DB2010 Mauritius defines the rights and obligations of creditors and debtors and sanctions for those who abuse the system. Malawi adopted new rules providing clear procedural DB2012 Malawi requirements and time frames for winding up a company. Namibia adopted a new company law that established clear DB2012 Namibia procedures for liquidation. South Africa introduced a new reorganization process to DB2012 South Africa facilitate the rehabilitation of financially distressed companies. Zambia strengthened its insolvency process by introducing further qualification requirements for receivers and DB2013 Zambia liquidators and by establishing specific duties and remuneration rules for them. The Democratic Republic of Congo made resolving insolvency DB2014 Congo, Dem. Rep. easier by adopting the OHADA Uniform Act Organizing Collective Proceedings for Wiping Off Debts. The law allows Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 88 DB year Economy Reform an insolvent debtor to file for preventive settlement, legal redress or liquidation Mauritius made resolving insolvency easier by introducing guidelines for out-of-court restructuring and standardizing DB2014 Mauritius the process of registration, suspension and removal of insolvency practitioners. Tanzania made resolving insolvency easier through new rules clearly specifying the professional requirements and DB2014 Tanzania remuneration for insolvency practitioners, promoting reorganization proceedings and streamlining insolvency proceedings. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 89 DATA NOTES The indicators presented and analyzed in Doing rounds of verification, leading to revisions or Business measure business regulation and the expansions of the information collected. protection of property rights—and their effect on businesses, especially small and medium-size domestic firms. First, the indicators document the complexity of ECONOMY CHARACTERISTICS regulation, such as the number of procedures to start a business or to register and transfer commercial property. Second, they gauge the time and cost to Gross national income per capita achieve a regulatory goal or comply with regulation, such as the time and cost to enforce a contract, go Doing Business 2014 reports 2012 income per capita through bankruptcy or trade across borders. Third, as published in the World Bank’s World Development they measure the extent of legal protections of Indicators 2013. Income is calculated using the Atlas property, for example, the protections of investors method (current U.S. dollars). For cost indicators against looting by company directors or the range of expressed as a percentage of income per capita, assets that can be used as collateral according to 2012 gross national income (GNI) in U.S. dollars is secured transactions laws. Fourth, a set of indicators used as the denominator. GNI data were not documents the tax burden on businesses. Finally, a set available from the World Bank for Afghanistan, The of data covers different aspects of employment Bahamas, Bahrain, Barbados, Brunei Darussalam, regulation. The 11 sets of indicators measured in Djibouti, the Islamic Republic of Iran, Kuwait, Libya, Doing Business were added over time, and the sample Myanmar, New Zealand, Oman, San Marino, the of economies expanded. Syrian Arab Republic, West Bank and Gaza, and the Republic of Yemen. In these cases GDP or GNP per The data for all sets of indicators in Doing Business 2 capita data and growth rates from other sources, 2014 are for June 2013. such as the International Monetary Fund’s World Economic Outlook database and the Economist Intelligence Unit, were used. Methodology Region and income group The Doing Business data are collected in a standardized way. To start, the Doing Business team, Doing Business uses the World Bank regional and with academic advisers, designs a questionnaire. The income group classifications, available at questionnaire uses a simple business case to ensure http://data.worldbank.org/about/country- classifications. The World Bank does not assign comparability across economies and over time—with regional classifications to high-income economies. assumptions about the legal form of the business, its For the purpose of the Doing Business report, high- size, its location and the nature of its operations. income OECD economies are assigned the “regional” Questionnaires are administered to more than 10,200 classification OECD high income. Figures and tables local experts, including lawyers, business consultants, presenting regional averages include economies accountants, freight forwarders, government officials from all income groups (low, lower middle, upper and other professionals routinely administering or middle and high income). advising on legal and regulatory requirements (table Population 21.2). These experts have several rounds of interaction with the Doing Business team, involving conference Doing Business 2014 reports midyear 2012 calls, written correspondence and visits by the team. population statistics as published in World For Doing Business 2014 team members visited 33 Development Indicators 2013. economies to verify data and recruit respondents. The data from questionnaires are subjected to numerous The Doing Business methodology offers several advantages. It is transparent, using factual information 2 The data for paying taxes refer to January – December 2012. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 90 about what laws and regulations say and allowing reasons the time delays reported in Doing Business multiple interactions with local respondents to clarify 2014 would differ from the recollection of potential misinterpretations of questions. Having entrepreneurs reported in the World Bank Enterprise representative samples of respondents is not an issue; Surveys or other perception surveys. Doing Business is not a statistical survey, and the texts This year Doing Business completed subnational of the relevant laws and regulations are collected and studies in Colombia, Italy and the city of Hargeisa answers checked for accuracy. The methodology is (Somaliland) and is currently updating indicators in inexpensive and easily replicable, so data can be Egypt, Mexico and Nigeria. Doing Business also collected in a large sample of economies. Because published regional studies for the g7+ and the East standard assumptions are used in the data collection, African Community. The g7+ group is a country- comparisons and benchmarks are valid across owned and country-led global mechanism established economies. Finally, the data not only highlight the in April 2010 to monitor, report and draw attention to extent of specific regulatory obstacles to business but the unique challenges faced by fragile states. The also identify their source and point to what might be member countries included in the report are reformed. Information on the methodology for each Afghanistan, Burundi, the Central African Republic, Doing Business topic can be found on the Doing Chad, the Comoros, the Democratic Republic of Business website at Congo, Côte d’Ivoire, Guinea, Guinea-Bissau, Haiti, http://www.doingbusiness.org/methodology. Liberia, Papua New Guinea, Sierra Leone, the Solomon Islands, South Sudan, Timor-Leste and Togo. Limits to what is measured The subnational studies point to differences in business regulation and its implementation—as well as The Doing Business methodology has 5 limitations that in the pace of regulatory reform—across cities in the should be considered when interpreting the data. First, same economy. For several economies subnational the collected data refer to businesses in the economy’s studies are now periodically updated to measure largest business city (which in some economies differs change over time or to expand geographic coverage from the capital) and may not be representative of to additional cities. This year that is the case for all the regulation in other parts of the economy. To address subnational studies published. this limitation, subnational Doing Business indicators were created (box 21.1). Second, the data often focus on a specific business form—generally a limited Changes in what is measured liability company (or its legal equivalent) of a specified size—and may not be representative of the regulation The methodology for 2 indicator sets—trading across on other businesses, for example, sole proprietorships. borders and paying taxes—was updated this year. For Third, transactions described in a standardized case trading across borders, documents that are required scenario refer to a specific set of issues and may not purely for purposes of preferential treatment are no represent the full set of issues a business encounters. longer included in the list of documents (for example, Fourth, the measures of time involve an element of a certificate of origin if the use is only to qualify for a judgment by the expert respondents. When sources preferential tariff rate under trade agreements). For indicate different estimates, the time indicators paying taxes, the value of fuel taxes is no longer reported in Doing Business represent the median included in the total tax rate because of the difficulty values of several responses given under the of computing these taxes in a consistent way across all assumptions of the standardized case. economies covered. The fuel tax amounts are in most cases very small, and measuring these amounts is Finally, the methodology assumes that a business has often complicated because they depend on fuel full information on what is required and does not consumption. Fuel taxes continue to be counted in the waste time when completing procedures. In practice, number of payments. completing a procedure may take longer if the business lacks information or is unable to follow up In a change involving several indicator sets, the rule promptly. Alternatively, the business may choose to establishing that each procedure must take at least 1 disregard some burdensome procedures. For both day was removed for procedures that can be fully Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 91 completed online in just a few hours. This change business and the distance to frontier measure. The affects the time indicator for starting a business, ease of doing business ranking compares economies dealing with construction permits and registering with one another, while the distance to frontier property. For procedures that can be fully completed measure benchmarks economies to the frontier in 3 online, the duration is now set at half a day rather than regulatory practice, measuring the absolute distance to a full day. the best performance on each indicator. Both measures can be used for comparisons over time. The threshold for the total tax rate introduced in 2011 When compared across years, the distance to frontier for the purpose of calculating the ranking on the ease measure shows how much the regulatory environment of paying taxes was updated. All economies with a for local entrepreneurs in each economy has changed total tax rate below the threshold (which is calculated over time in absolute terms, while the ease of doing and adjusted on a yearly basis) receive the same business ranking can show only relative change. ranking on the total tax rate indicator. The threshold is not based on any economic theory of an “optimal tax Ease of doing business rate” that minimizes distortions or maximizes efficiency The ease of doing business index ranks economies in the tax system of an economy overall. Instead, it is from 1 to 189. For each economy the ranking is mainly empirical in nature, set at the lower end of the calculated as the simple average of the percentile distribution of tax rates levied on medium-size rankings on each of the 10 topics included in the index enterprises in the manufacturing sector as observed in Doing Business 2014: starting a business, dealing through the paying taxes indicators. This reduces the with construction permits, getting electricity, bias in the indicators toward economies that do not registering property, getting credit, protecting need to levy significant taxes on companies like the investors, paying taxes, trading across borders, Doing Business standardized case study company enforcing contracts, and resolving insolvency. The because they raise public revenue in other ways—for employing workers indicators are not included in this example, through taxes on foreign companies, through year’s aggregate ease of doing business ranking. taxes on sectors other than manufacturing or from natural resources (all of which are outside the scope of Construction of the ease of doing business index the methodology). This year the threshold is 25,5%. Here is one example of how the ease of doing business index is constructed. In Denmark it takes 4 procedures, 5.5 days and 0.2% of annual income per capita in fees Data challenges and revisions to open a business. The minimum capital requirement Most laws and regulations underlying the Doing is 24% of annual income per capita. On these 4 Business data are available on the Doing Business indicators Denmark ranks in the 12th, 11th, 1st and website at http://www.doingbusiness.org. All the 79th percentiles. So on average Denmark ranks in the sample questionnaires and the details underlying the 25th percentile on the ease of starting a business. It indicators are also published on the website. Questions ranks in the 21st percentile on getting credit, 19th on the methodology and challenges to data can be percentile on paying taxes, 27th percentile on submitted through the website’s “Ask a Question” enforcing contracts, 5th percentile on resolving function at http://www.doingbusiness.org. insolvency and so on. Higher rankings indicate simpler regulation and stronger protection of property rights. Ease of doing business and distance to The simple average of Denmark’s percentile rankings frontier on all topics is 17th. When all economies are ordered Doing Business 2014 presents results for 2 aggregate by their average percentile rankings, Denmark stands measures: the aggregate ranking on the ease of doing at 5 in the aggregate ranking on the ease of doing business. 3 For getting electricity the rule that each procedure must take a minimum of 1 day still applies because in practice there are no More complex aggregation methods—such as cases in which procedures can be fully completed online in less than principal components and unobserved components— a day. For example, even though in some cases it is possible to yield a ranking nearly identical to the simple average apply for an electricity connection online, additional requirements mean that the process cannot be completed in less than 1 day. Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 92 4 used by Doing Business. Thus, Doing Business uses 58 on enforcing contracts, 116 on dealing with the simplest method: weighting all topics equally and, construction permits and 145 on getting electricity. within each topic, giving equal weight to each of the Variation in performance across the indicator sets is topic components. not at all unusual. It reflects differences in the degree If an economy has no laws or regulations covering a of priority that government authorities give to specific area—for example, insolvency—it receives a particular areas of business regulation reform and the “no practice” mark. Similarly, an economy receives a ability of different government agencies to deliver “no practice” or “not possible” mark if regulation exists tangible results in their area of responsibility. but is never used in practice or if a competing Distance to frontier measure regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the A drawback of the ease of doing business ranking is ranking on the relevant indicator. that it can measure the regulatory performance of economies only relative to the performance of others. The ease of doing business index is limited in scope. It It does not provide information on how the absolute does not account for an economy’s proximity to large quality of the regulatory environment is improving markets, the quality of its infrastructure services (other over time. Nor does it provide information on how than services related to trading across borders and large the gaps are between economies at a single getting electricity), the strength of its financial system, point in time. the security of property from theft and looting, macroeconomic conditions or the strength of The distance to frontier measure is designed to underlying institutions. address both shortcomings, complementing the ease of doing business ranking. This measure illustrates the Variability of economies’ rankings across topics distance of an economy to the “frontier,” and the Each indicator set measures a different aspect of the change in the measure over time shows the extent to business regulatory environment. The rankings of an which the economy has closed this gap. The frontier is economy can vary, sometimes significantly, across a score derived from the most efficient practice or indicator sets. The average correlation coefficient highest score achieved on each of the component between the 10 indicator sets included in the indicators in 10 Doing Business indicator sets aggregate ranking is 0.38, and the coefficients (excluding the employing workers indicators) by any between any 2 sets of indicators range from 0.18 economy. In starting a business, for example, Canada (between getting electricity and getting credit) to 0.58 and New Zealand have achieved the highest (between trading across borders and resolving performance on the number of procedures required (1) insolvency and between trading across borders and and on the time (0.5 days), Denmark and Slovenia on getting electricity). These correlations suggest that the cost (0% of income per capita) and Chile, Zambia economies rarely score universally well or universally and 99 other economies on the paid-in minimum badly on the indicators. capital requirement (0% of income per capita) (table 22.2). Consider the example of Canada. It stands at 19 in the aggregate ranking on the ease of doing business. Its Calculating the distance to frontier for each economy ranking is 2 on starting a business, 4 on protecting involves 2 main steps. First, individual indicator scores investors, and 8 on paying taxes. But its ranking is only are normalized to a common unit: except for the total tax rate, each of the 31 component indicators y is rescaled to (max − y)/(max − min), with the minimum 4 See Simeon Djankov, Darshini Manraj, Caralee McLiesh and Rita Ramalho, “Doing Business Indicators: Why Aggregate, and How to value (min) representing the frontier—the highest Do It” (World Bank, Washington, DC, 2005). Principal components performance on that indicator across all economies and unobserved components methods yield a ranking nearly identical to that from the simple average method because both since 2003 or the first year the indicator was collected. 5 these methods assign roughly equal weights to the topics, since the For the total tax rate, consistent with the calculation of pairwise correlations among indicators do not differ much. An alternative to the simple average method is to give different weights to the topics, depending on which are considered of more or less 5 Even though scores for the distance to frontier are calculated from importance in the context of a specific economy. 2005, data from as early as 2003 are used to define the frontier Doing Business 2014 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 93 the rankings, the frontier is defined as the total tax rate Economies that improved the most across 3 or at the 15th percentile of the overall distribution of more Doing Business topics in 2012/13 total tax rates for all years. Second, for each economy Doing Business 2014 uses a simple method to calculate the scores obtained for individual indicators are which economies improved the most in the ease of aggregated through simple averaging into one doing business. First, it selects the economies that in distance to frontier score, first for each topic and then 2012/13 implemented regulatory reforms making it across all topics. An economy’s distance to frontier is easier to do business in 3 or more of the 10 topics indicated on a scale from 0 to 100, where 0 represents included in this year’s ease of doing business ranking. 6 the lowest performance and 100 the frontier. Twenty-nine economies meet this criterion: Azerbaijan, The maximum (max) and minimum (min) observed Belarus, Burundi, Côte d’Ivoire, Croatia, Djibouti, values are computed for all economies included in the Gabon, Guatemala, Guinea, Italy, Kosovo, Latvia, the Doing Business sample since 2003 and for all years former Yugoslav Republic of Macedonia, Malaysia, (from 2003 to 2013). To mitigate the effects of extreme Mauritius, Mexico, Moldova, Mongolia, Morocco, outliers in the distributions of the rescaled data (very Panama, the Philippines, the Republic of Congo, few economies need 694 days to complete the Romania, the Russian Federation, Rwanda, Sri Lanka, procedures to start a business, but many need 9 days), Ukraine, Uzbekistan and the United Arab Emirates. th the maximum (max) is defined as the 95 percentile of Second, Doing Business sorts these economies on the the pooled data for all economies and all years for increase in their distance to frontier measure from the each indicator. The exceptions are the getting credit, previous year using comparable data. protecting investors and resolving insolvency Selecting the economies that implemented regulatory indicators, whose construction precludes outliers. In reforms in at least 3 topics and improved the most in addition, the cost to export and cost to import for each the distance to frontier measure is intended to year are divided by the GDP deflator, so as to take the highlight economies with ongoing, broadbased reform general price level into account when benchmarking programs. The criterion for identifying the top these absolute-cost indicators across economies with improvers was changed from last year. The different inflation trends. The base year for the deflator improvement in ease of doing business ranking is no is 2013 for all economies. longer used. The improvement in the distance to The difference between an economy’s distance to frontier measure is used instead because under this frontier score in any previous year and its score in measure economies are sorted according to their abs- 2013 illustrates the extent to which the economy has olute improvement instead of relative improvement. closed the gap to the frontier over time. And in any given year the score measures how far an economy is from the highest performance at that time. Take Colombia, which has a score of 70.5 on the distance to frontier measure for 2014. This score indicates that the economy is 29.5 percentage points away from the frontier constructed from the best performances across all economies and all years. Colombia was further from the frontier in 2009, with a score of 66.2. The difference between the scores shows an improvement over time. The distance to frontier measure can also be used for comparisons across economies in the same year, complementing the ease of doing business ranking. For example, Colombia stands at 63 this year in the ease of doing business ranking, while Peru, which is 6 Doing Business reforms making it more difficult to do business are 29.3 percentage points from the frontier, stands at 42. subtracted from the total number of those making it easier to do business. RESOURCES ON THE DOING BUSINESS WEBSITE Current features Business reforms News on the Doing Business project Short summaries of DB2014 business reforms, lists http://www.doingbusiness.org of reforms since DB2008 and a ranking simulation tool Rankings http://www.doingbusiness.org/reforms/ How economies rank—from 1 to 189 http://www.doingbusiness.org/rankings/ Historical data Customized data sets since DB2004 Data http://www.doingbusiness.org/custom-query/ All the data for 189 economies—topic rankings, indicator values, lists of regulatory procedures and Law library details underlying indicators Online collection of business laws and regulations http://www.doingbusiness.org/data/ relating to business and gender issues http://www.doingbusiness.org/law-library/ Reports http://wbl.worldbank.org/ Access to Doing Business reports as well as subnational and regional reports, reform case Contributors studies and customized economy and regional More than 10,200 specialists in 189 economies profiles who participate in Doing Business http://www.doingbusiness.org/reports/ http://www.doingbusiness.org/contributors/doing- business/ Methodology The methodologies and research papers Entrepreneurship data underlying Doing Business Data on business density for 139 economies http://www.doingbusiness.org/methodology/ http://www.doingbusiness.org/data/exploretopics /entrepreneurship/ Research Abstracts of papers on Doing Business topics and Doing Business iPhone App related policy issues Doing Business at a Glance App presents the full http://www.doingbusiness.org/research/ report, rankings and highlights http://www.doingbusiness.org/specialfeatures/